California Solar InitiativeGo Solar California!

Program Update Presentation to the Assembly Utilities & Commerce Committee

Sean Gallagher, Energy DivisionCalifornia Public Utilities Commission

October 30, 2007

California Solar Initiative

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California Solar Initiative (CSI) Goals

Statewide goals 3,000 MW of new distributed solar distributed

generation by 2016 To create a self-sustaining solar industry free

from ratepayer subsidies after 2016 Provides rebates for solar based on performance Rewards optimally-sited and maintained systems to

ensure performance, maximize ratepayer return on investment

CPUC portion of the statewide goal 1,940 MW in investor-owned utility territories

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California Solar Initiative by Program Component, 2007-2016Program

AuthorityCalifornia

Public Utilities Commission

California Energy

Commission

Publicly Owned Utilities (POU)

Budget $2,167 million $400 million $784 million

Solar Goals (MW)

1,940 MW 360 MW 700 MW

Scope All systems in IOU areas except new homes

New homes, IOU territories

All systems in POU areas

Audience Various Builders, home buyers

Various

Begins January 2007 January 2007 January 2008

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CPUC CSI Budget 2007-2016

Program CategoryBudget

($ Million)

General Market Program Subtotal $1,897

Direct Incentives to Consumers $1,707

Program Administration, Marketing & Outreach, Evaluation (10%) $190

Low-Income Program (10%) $217

Research, Development, Deployment and Demonstration (RD&D) $50

San Diego Regional Energy Office Solar Hot Water Pilot $2.6

Total CPUC CSI Budget $2,167

3 CPUC Program Administrators Pacific Gas & Electric Southern California Edison California Center for Sustainable Energy (CCSE)

CPUC 1,940 MW Goal 1,750 MW from general market program 190 MW from low-income rebates

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Notes: The total refers to the MW goal of the program not including the MW that will be installed under the low-income program. Rebate reductions are triggered by MW steps, such that the incentive declines once the capacity installed reaches a pre-specified level, rather than on an annual basis. Residential & Commercial rebate steps are shown as one line, but they decline separately according to the demand in each sector.

CPUC incentives decline as we work towards goal of 1,750 MW

0

50

100

150

200

250

300

350

400

Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9MW Step (2)

MW

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

Re

ba

te L

ev

el (

$/w

att

)

Installations: Total 1750 MW (1)

Residential & Commercial Rebate Level

Government & Non-Profit Rebate Level

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SB1 Implementation Rebate program ($1,897 Million)

CPUC program design decision consistent with SB1 (December 2006): Two performance-based incentives, both incorporate time-variance Pushes most installations to monthly performance incentive by 2010 Ten-step declining incentive levels segmented by customer type “Trigger Tracker” website forewarns of impending incentive drops Energy efficiency audit requirement pending CEC guidelines 10-year warranty consistent with NSHP program $100.8 million non-photovoltaic incentives to start soon

R&D grant program ($50 Million) Focus on demonstration stage and grid-integration projects Decision adopted in September, CPUC to issue Manager RFP

Low-income incentives ($217 Million) Single-family: Proposed decision issued in October Multifamily incentive program – Administrator proposal

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CSI MW Targets by Program Administrator and Customer Class    

PG&E (MW)

SCE (MW)

CCSE/SDG&E (MW)

Step MW in Step Res Non-Res Res Non-Res Res Non-Res

1 50 -- -- -- -- -- --

2 70 10.1 20.5 10.6 21.6 2.4 4.8

3 100 14.4 29.3 15.2 30.8 3.4 6.9

4 130 18.7 38.1 19.7 40.1 4.4 9.0

5 160 23.1 46.8 24.3 49.3 5.4 11.0

6 190 27.4 55.6 28.8 58.6 6.5 13.1

7 215 31.0 62.9 32.6 66.3 7.3 14.8

8 250 36.1 73.2 38.0 77.1 8.5 17.3

9 285 41.1 83.4 43.3 87.8 9.7 19.7

10 350 50.5 102.5 53.1 107.9 11.9 24.2

Subtotal252.4 512.3 265.6 539.5 59.5 120.8

Totals 764.8 805.0 180.3

Percent 43.7% 46.0% 10.3%

Shading denotes current step.

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Here Comes the Sun… The CSI program started slow, but demand is now robust.

From Jan 1- Sept 18, 2007, we received 5,230 applications (5,109 active) 175 MW (160 MW active) $363 Million in rebates ($320 million active)

In the first 9 months alone, requests are nearing CA’s total installed solar from the previous 26 years (198 MW).

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CSI Demand Varies by TerritoryCSI Applications, Jan. 1-Sept. 18, 2007

3349

878

337372 212 820

5001000150020002500300035004000

PG&E SCE CCSE

Res'l

Non-Res'l

% of CSI Budget: 43.7% 46% 10.3%

72 MW total,but 67 MW

Non-res

20 MW total,but 18 MW

Non-res

84 MW total, but 69 MW

Non-res

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Interest Keeps Growing

Demand continues to climb despite early transition issues and new CSI application procedures.

Total Applications - All 3 Program AdministratorsJanuary 1- September 18, 2007

0

200

400

600

800

1000

1200

1400

Jan. Feb. Mar. Apr. May June July Aug. Sept.

Month

# o

f A

pp

lica

tio

ns

Non-Residential

Residential

(Half-month data)

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Projects Are Getting Paid

Paid = 9.4 MW, $25 million

Reserved1,830

Requested2,122

Completed1,157

CSI Applications Moving Through Application Process (January 1 - September 18, 2007)

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CSI Total Demand Surpasses Past Requests

• CSI has higher demand in MW than SGIP & ERP in 2006. • SGIP = Self Generation Incentive Program, funded systems >30Kw• ERP = Emerging Renewables Program, funded systems <30kW

Solar Capacity in IOU Territories 2003-2007

24.5 19.3 21.349.619.8 28.6

66.3 160.5

10.6

020406080

100120140160180

2003 2004 2005 2006 2007

Year

MW

CSI

SGIP

ERP

2003-2005Installations Completed

2006-2007Installations in Progress or Completed

116 MW

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CPUC is tracking a variety of program administration metrics

Administration Metric Responses from all 3 Program Administrators

Duration: application to payment 117 – 135 days

Reviewing applications: 8 - 49 days

% of applications with problems: 35% - 60%

Scheduling inspection: 1 – 3 weeks

Inspection time: ½-2 hours Residential½ hour – 4 hours Non-Residential

% of “failed” inspections: 30% - PG&E10% - SCE14%- CCSE

Time from Claim Form Submission to Mailing Checks

28 – 60 days

Time from interconnect application to authorization to interconnect

12 –days PG&E39 days – SCE

36 days – SDG&E

Number of installers trained since January in classes

400 companies; 850 Installers – PG&E68 companies; 129 installers – SCE

86 companies, 667 installers – CCSE

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Post-Launch Transition Issues Residential Demand:

Awareness of new performance requirements Incentive drop from CEC program Mandatory Time of Use Rates for some customers

Application paperwork, speed Delayed program tools (calculator, handbook, database)

Metering accuracy requirements Access for BIPV product to up-front incentive Shading calculation methodology Inspection rigor Reluctance to energy efficiency audit requirements

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Streamline and accelerate application processing Reduced paperwork in Sept, more reductions pending Administrators staffed up to meet spike in residential demand

Metering Requirements Eased some metering accuracy requirements, clarified others

Time of Use Rates Delayed implementation of mandatory Time of Use Rates

BIPV: allowed, revised calculator Shading: Administrators revised calculation methodology Inspection protocols: Introduced inspection tolerances Marketing and Outreach

Increased installer outreach and training Instituted a monthly newsletter on administration changes

Program Response

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Upcoming Issues for CSI Program

Streamline and accelerate application process Implement SB1 Eligibility Guidelines Monitor rate cases, mandatory TOU rates for impacts on

solar economics Monitor demand by sectors & “drop-outs” Improve database and reporting tools Evaluate trends in market costs against incentive levels Solar Hot Water Pilot

Underway, runs through 2008 Will inform implementation of AB 1470 (Huffman,

2007)

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California Solar Initiative Resources The statewide consumer website

www.GoSolarCalifornia.ca.gov The CSI Program Handbook includes eligibility information and

application information: www.GoSolarCalifornia.ca.gov/documents/index.html

The CSI Program Administrators developed a tool to calculate the up-front EPBB incentive, known as the EPBB Calculator:www.csi-epbb.com

The CSI Program Administrators launched an online application tool and reporting database, known as Powerclerk:csi.powerclerk.com

Up-to-date information about the program's current incentive level, or "step" can be found on the online CSI Trigger Tracker:www.csi-trigger.com

Information about the CPUC regulatory proceeding that deals with the CSI program can be found online at:www.cpuc.ca.gov/static/energy/solar/_index.htm

California Solar Initiative: Resources